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wsDK_II
Amazon is making a profit, but not a decent return on the capital deployed.

Amazon is using existing cashflow to expand, and shareholders have not deserted because their stock value continues to go up.....so other retailers are having to adjust to a new normal (on price, margins, range, service) because Amazon will continue down this path.

Amazon is not hype (2bn in profit last yr, 16bn in operating cashflow, 13bn in cash, 7bn in debt).....they can keep on doing what they have and will have shareholder support as long as they don't dilute shareholders.

The question is what competitive advantage they can bring to a small market with huge distances like Aus. Canada probably gave them some ideas (although in Canada they can leverage US product and fulfillment centres), but given we don't have any dominant ecommerce player in Aus, I can see them initially take a niche market and dominate and then expand.

RCG price.....if this is on the back of Amazon, then market is bonkers....can't see Australians buying shoes online for at least another 3-4 years (well at some stage RCG's licence deals will expire)